As of August 2025, sales of e-trucks have almost doubled following the government Subsidies up to ₹930,000 and private capital-backed loans for each e-truck.
Electric truck registrations in India almost doubled in the first three weeks of August, supported by a ₹5 billion central government incentive and new private financing initiatives. Data from the Vahan portal showed 60 medium and heavy-duty electric trucks were registered as of 19 August 2025. Monthly sales this year had ranged from 11 in February to 38 in May.
The Ministry of Heavy Industries issued guidelines in July for claiming benefits under the PM E-DRIVE programme. The scheme provides upfront subsidies of ₹270,000 to 930,000 1per truck, covering up to 5,600 vehicles by March 2028. It also requires buyers to present scrapping certificates for similar-sized vehicles, a condition not applied to private finance schemes.
Niti Aayog data shows that of 834,578 trucks sold in 2024, only 6,220 were electric. Among them, just 280 exceeded 35 tonnes, a category viewed as critical for long-distance freight. Transport contributes about 12% of India’s carbon emissions, while diesel trucks alone account for nearly one-third of these.
Studies by Niti Aayog and WRI India attribute the slow adoption of electric trucks due to higher upfront costs, estimated to be two to three times those of diesel vehicles, along with financing constraints and limited charging networks.
To bridge these gaps, private lenders have introduced new models. The National Highways for Electric Vehicles (NHEV), under the commerce ministry’s Ease of Doing Business initiative, has set up a ₹5 billion viability gap fund. In August, it began disbursing loans for e-truck procurement.
Pilot trials are also underway. A 55-tonne electric truck trial by Ashok Leyland is scheduled for September. Current procurement costs of about ₹12.5 million per vehicle are expected to fall towards ₹9 million as incentives and financing converge to lower ownership costs.
